Minutes 11/09/1993 - Laserfiche WebLink

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228 November 9, 1993 93-438 - Letter from the City Manager recommending adoption of a resolution approving the advance refunding of principal amounts of $12,685,000 General Obligation Public Improvement Bonds, series 1992; $4,195,000 General Obligation Public Utility Bonds, series 1992; $4,135,000 General Obligation Public Improvement Refunding Bonds, series 1992; $1,960,000 General Obligation Public Utility Refunding Bonds, series 1992; and for the purpose of requesting the approval of the State Council on Local Debt to issue ~he refunding bonds. "The financial market has recently seen another dramatic decline in interest rates. Over the last several Weeks interest rates have been the lowest they have been in more than twenty-five years. We have again reviewed the City's outstanding bond issues to see if any issue or series of maturities would qualify to be refunded at this time and have noted two issues that may qualify. This would include parts of the bonds that were issued in January 1992 as well as portions of the refunding issue dated April 1992. These bonds include both Public Improvement Bonds and Public Utility Bonds. While the exact sav~ngs will not be known until 'after-the refunding bonds have been marketed, an overall savings of at least three percent must be achieved before the State Council on Local Debt will permit the refunding to take place. The attached resolution has been prepared to authorize the staff to proceed to apply to the State Council on Local Debt for permission to refund these bonds. While there is no guarantee that the financial conditions will remain favorable, having the permission to refund the bonds, will allow us to enter the~market quickly to take advantage of the lower interest rates for the next six months. The Municipal Finance Commission has been apprised of this potential for refunding and has favorably recommended that we proceed. I, therefore, recommend that the City Council adopt the attached resolution." Motion by Mr. Clemons, and seconded-by Mr. Pitts, to adopt the following resolution and was adopted by the following vote: A RESOLUTION OF TI-LB cOUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA. APPROVING THE ADVANCE REFLRqDING A PORTION OF OR ALL OF THE CITY'S $12,685.00G OUTSTANDING PRINCIPAL AMOUNT OF CITY OF PORTSMOUTH. VIRGINIA, GEaNERAL OBLIGATION PI/BLIC IMPROVEMENT BONDS. SERIES 1992. DATED JANUARY h 1992 AND MATURING AUGUST 1 2002 TO AUGUST l, 2012, BOTH INCLUSIVE. THE CITY'S $4,195,000 OUTSTA~NDING PRINCIPAL _~viOVoq'qT OF CITY OF PORTSMOUTH. VIRGINIA, GENERAL OBLIGATION PUBLIC U'I:ILITY BONDS, SERIES 1992. DATED JANUARY h 1992 AND MATIJRING AUGUST 1, 2002 TO AUGUST 1, 2012. BOTH INCLUSIVE. THE CITY'S S4,135,000 OUTSTANDING pp~-'qCIPAL AMOL~T OF CITY OF PORTSMOUTH, VIRGINIA, GENERAL OBLIGATION PUBLIC IMPROVEMENI REFUNDINGBONDS= SERIES 1992, DATED APRIL h I992 AND MATURING NOVEMBER 1, 2002 TO NOVEiVI]BER 1. 2005, BOTH INCLUSIVE, AND THE CITY'S S1,960,000 OUTSTANDING PRINCIPAL AMOUNT OF CITY OF PORTSMOUTH, VIRGINIA. GENERAL OBLIGATION PUBLIC LrrII/TY REFUNDING BONDS. SERIES 1992. DATED APRIL 1 [992 AN]D MATURING NOVEiV~BR 1, 2002 TO NOVEtVlBER 1, 2005, BOTH INCLUSIVE, AND A.IJTI-IORIZING TIlE DIRECTOR OF FINANCE AN-D OTHt~ Cfff OFFICIALS TO S!~'t<[ TI--IE APPROVAL OF THE STATE COUNCIL ON LOCAL DEBT ~Vi'l'i-I RESPECT TO TIlE ISSUANC~ OF "REFUNDING BONDS" FOR TH~ PURPOSE OF ADVANCE R.EFUNDING A PORTION OF OR. ALL OF THE AFOREM.EN~OiN~D BONDS pURSUANT TO sECTION 15.1-227.46 OF ~ CODE OF VIRGINIA [950. AND Tt~ "GUID~ FOR APPROVAL OF ~ING BONDS BY 1'¢7E STATE COUNCIL ON LOCAL DEBT" ADOPTE~ BY Tk-~ STATE COUNCIL ON LOCAL DEBT ~UNDER 3